KASAM BHAI HAJI MOOSAJI AND SONS Vs. ASSISTANT COMMERCIAL TAXES OFFICER WARD C PALI

JUDGEMENT

(1.) THIS revision petition is directed against the order dated 20th February, 1986 passed by the Rajasthan Sales Tax Tribunal, Ajmer (hereinafter referred to as "the Tribunal" ). The brief facts giving rise to this revision petition are that the petitioner-assessee is registered dealer. He was given a contract by the Panchayat Samiti, Sumerpur, to exclusively collect bones in its area on payment of Rs. 7,500. The petitioner-assessee was also given a contract by the Forest Department to recover anwal chaal on payment of Rs. 2,000 for a period of one year. Both the departments, namely, Panchayat Samiti as well as the Forest Department, are registered dealers. The sales tax was to be deposited by the respective departments on these sales. At the time of assessment, it was found that the assessee has not paid the tax on the sales made by him to the individual consumers of the bones and the chaal. Thereafter, the assessee was levied with the tax on the total turnover by the assessment order of the Assistant Commercial Taxes Officer, Ward C, Pali. Aggrieved against this assessment, the assessee approached the appellate authority and the learned Deputy Commissioner (Appeals), Commercial Taxes, Jodhpur, accepted the plea of the assessee and set aside the demand of sales tax raised by the Assistant Commercial Taxes Officer, Pali. Aggrieved against this order, an appeal was preferred by the Assistant Commercial Taxes Officer, Pali, before the Rajasthan Sales Tax Tribunal, Ajmer. The learned Member, Tribunal, accepted the State appeal and relying upon the decision of the Madhya Pradesh High Court in Anandilal Naraindas v. Commissioner of Sales Tax, M. P. , Indore [1968] 22 STC 19 held that the department is not liable to pay the tax, but the assessee is liable to pay the tax on his turn-over. Aggrieved against this order of the Tribunal dated 20th February, 1986 the assessee has approached this Court by filing the present revision petition.

(2.) MR. Mehta, learned counsel for the petitioner, submitted that section 5 relates to charging of tax and it lays down that tax payable by a dealer under this Act shall be at such single point in the series of sales by successive dealers as may be prescribed and shall be levied at such rate notified by the Government in the Official Gazette. The Government has notified that the tax payable under section 5 of the Act shall be at the first point in the series of sale by successive dealers under rule 15 of the Rajasthan Sales Tax Rules, 1955. Rule 15 of the aforesaid Rules reads as under : " 15. Point of taxation.- Unless otherwise directed by the State Government by a notification in the Official Gazette, the tax payable under section 5 of the Act shall be at the first point in the series of sale by successive dealers. Explanation.- For the purpose of this rule, the first point in the series of sale shall mean the first sale in such series by a registered dealer and the second and subsequent points shall be determined accordingly while the last point in the series of such sale shall be the last sale in such series to an unregistered dealer or to a consumer or to a registered dealer for purposes other than resale within the State or in case of goods specified by the State Government, the last point in such series shall also be the last sale to a registered dealer in whose registration certificate such goods are recorded for resale by him to an unregistered dealer or a consumer. "

(3.) IN the result, the revision petition is allowed and the order passed by the Tribunal on 20th February, 1986 is set aside. The parties are left to bear their own costs. Petition allowed. .